Key Updates for September 10th
Here’s what to keep an eye on for today:
USD Performance The US dollar (USD) displayed resilience on Tuesday, seemingly unaffected by significant downward revisions to employment data. As Wednesday unfolds, it appears to be in a consolidation phase while market attention shifts to August’s producer inflation figures. Later today, the US Treasury is expected to conduct a 10-year memo auction.
This Week’s US Dollar Price
This section highlights the fluctuations of the US dollar (USD) against other major currencies this week.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | -0.24% | -0.57% | 0.08% | -0.85% | -0.90% | -0.22% | |
| EUR | 0.02% | -0.23% | -0.47% | 0.09% | -0.82% | -0.84% | -0.20% | |
| GBP | 0.24% | 0.23% | -0.34% | 0.32% | -0.60% | -0.61% | 0.03% | |
| JPY | 0.57% | 0.47% | 0.34% | 0.58% | -0.31% | -0.48% | 0.38% | |
| CAD | -0.08% | -0.09% | -0.32% | -0.58% | -0.83% | -0.92% | -0.30% | |
| AUD | 0.85% | 0.82% | 0.60% | 0.31% | 0.83% | -0.01% | 0.63% | |
| NZD | 0.90% | 0.84% | 0.61% | 0.48% | 0.92% | 0.01% | 0.64% | |
| CHF | 0.22% | 0.20% | -0.03% | -0.38% | 0.30% | -0.63% | -0.64% |
This table shows the percentage changes between various major currencies.
A recent revision to employment data from the U.S. Bureau of Labor Statistics indicated a reduction of 911,000 jobs added by March 2025 compared to earlier reports. Currently, the USD index holds steady above 97.50, while mixed trading is observed in US stock index futures. The producer price index is anticipated to rise by 3.3% annually for August, mirroring July’s increase.
In the Middle East, tensions have heightened, propelling gold to a new peak of over $3,670 on Tuesday. It faced a slight drop afterward, stabilizing around $3,650 earlier Wednesday. Israel reported strikes in Doha, targeting alleged responsibilities for the October 7th attack, while Qatar condemned the actions as a severe breach of international law.
On the economic front in Asia, China’s data showed unchanged figures for July, with the Consumer Price Index (CPI) dipping by 0.4% year-on-year in August. Meanwhile, AUD/USD gained momentum, trading above the 0.6600 mark.
For EUR/USD, it lost over 0.4% on Tuesday, reversing gains from the previous day. After dipping below 1.1700, it found some footing, trading marginally higher at about 1.1710.
GBP/USD rose towards the 1.3600 mark on Tuesday but reversed to close lower, settling just beneath 1.3550 early Wednesday.
USD/JPY remains slightly under 147.50 as European trading begins, showing little change from Tuesday.
The information was updated at 07:18 GMT on September 10th, correcting a point about gold stabilization early Wednesday rather than Friday.
US Dollar FAQ
The US dollar (USD) serves as the official currency of the United States and is widely used in other countries alongside local currencies. In 2022, it was the most traded currency globally, making up over 88% of forex transactions, translating to around $6.6 trillion daily. Post-World War II, the US dollar replaced the British pound as the global reserve currency, initially backed by gold until the Bretton Woods Agreement in 1971 ended the gold standard.
The key factor influencing the USD’s value is the monetary policy set by the Federal Reserve, which aims for price stability and full employment. They adjust interest rates as a primary tool: raising them to control inflation when it exceeds 2% and lowering them in times of high unemployment or low inflation, which can weaken the dollar.
In extreme situations, the Fed may opt for quantitative easing (QE), a method to increase credit flow in the financial system. This tactic is typically employed during credit crunches when banks hesitate to lend. Notably, QE was extensively used during the 2008 financial crisis, resulting in a stronger issuance of dollars to buy U.S. government bonds, generally leading to a weaker dollar.
Conversely, quantitative tightening (QT) involves the Fed halting bond purchases and not reinvesting principal from maturing bonds, which usually supports the value of the USD.
